DOCUMENT NO:

<COMPANY LOGO> <OPERATING UNIT/BUSINESS UNIT>

<NAME OF PROJECT>

PROJECT EXECUTION & QUALITY PLAN

REVISION RECORD

REV NO. REVISION DESCRIPTION DATE OF ISSUE

Review Approval
Revision No.

Commissioning

Project Control
Construction
Procurement
Engineering

MANAGER
Originator

PROJECT
Contract

HSE
QA
CONTRACTOR

CHECKED BY APPROVED BY
OWNER

DATE: DATE:

RECORD OF CHANGE
Date of Amendment or Re- Page No. Page No. Revision
REASON FOR CHANGE
Issue Issued Replaced No.
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TABLE OF CONTENT

1.0 PURPOSE AND SCOPE.........................................................................................4

2.0 OBJECTIVE.............................................................................................................4
3.0 DEFINITIONS ..........................................................................................................4
4.0 REFERENCE ...........................................................................................................4
5.0 PROJECT DESCRIPTION ......................................................................................5
6.0 SCOPE OF WORK ..................................................................................................5
7.0 PROJECT ORGANISATION...................................................................................5
8.0 EXECUTION STAGES ............................................................................................5
8.1 ENGINEERING..................................................................................................5
8.1.1 General .......................................................................................................5
8.1.2 Functional Objectives ...............................................................................6
8.1.3 Engineering Practices...............................................................................6
8.1.4 Resources ..................................................................................................8
8.1.5 Sequence Of Activities .............................................................................8
8.2 PROCUREMENT AND MATERIALS MANAGEMENT ...............................9
8.2.1 General .......................................................................................................9
8.2.2 Functional Objectives ...............................................................................9
8.2.3 Management Practices...........................................................................10
8.2.4 Resources ................................................................................................11
8.2.5 Sequence Of Activities ...........................................................................11
8.3 CONSTRUCTION ...........................................................................................13
8.3.1 General .....................................................................................................13
8.3.2 Functional Objectives .............................................................................13
8.3.3 Construction Management Practices ...................................................13
8.3.4 Resources ................................................................................................14
8.3.5 Sequence Of Activities ...........................................................................15
8.4 COMMISSIONING ..........................................................................................15
8.4.1 General .....................................................................................................15
8.4.2 Functional Objectives .............................................................................15
8.4.3 Commissioning Management Practices ..............................................16
8.4.4 Resources ................................................................................................16
8.4.5 Sequence Of Activities ...........................................................................17
8.5 PROJECT PLANNING & CONTROL...........................................................17
8.5.1 General .....................................................................................................17
8.5.2 Functional Objectives .............................................................................17
8.5.3 Work Scope Definition ............................................................................18
8.5.4 Work Breakdown Structure (WBS).......................................................18
8.5.5 Time, Planning And Scheduling............................................................18
8.6 COST ESTIMATING AND BUDGETTING ..................................................21
8.6.1 Project Capital Cost Estimation ............................................................21
8.6.2 CONSULTANT’s Project Operating Budget .......................................21
8.7 QUALITY MANAGEMENT.............................................................................22
8.7.1 General .....................................................................................................22
8.7.2 The Process Approach...........................................................................22
8.7.3 QMS Program ..........................................................................................22
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TABLE OF CONTENT

8.8 HEALTH, SAFETY & ENVIRONMENT (HSE)............................................25

8.8.1 General .....................................................................................................25
8.8.2 HSE Objectives........................................................................................25
8.8.3 HSE Culture .............................................................................................25
8.8.4 Organisation.............................................................................................26
8.8.5 HSE Committee Organisation ...............................................................27
8.8.6 Implementation Strategy ........................................................................27
8.9 DOCUMENT MANAGEMENT.......................................................................28
8.9.1 Hierarchy of Document...........................................................................28
8.9.2 Responsibility for Document and Records control.............................29
8.9.3 Project Final Documentation .................................................................30
8.10 PROJECT COMPLETION MANAGEMENT ...............................................30
8.10.1 Mechanical Completion ..........................................................................30
8.10.2 Initial Acceptance ....................................................................................30
8.10.3 Final Acceptance.....................................................................................31
8.11 CONSULTANT - OWNER INTERFACE......................................................31
8.11.1 Project Progress Meetings.....................................................................31
8.11.2 Meetings with OWNER...........................................................................31
8.11.3 Meetings with CONTRACTOR..............................................................31
8.11.4 Monthly Status Report ............................................................................31
8.11.5 Official Correspondences.......................................................................31
8.11.6 Unofficial Daily Communication ............................................................32
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1.0 PURPOSE AND SCOPE

This Project Quality Management Plan shall detail the CONSULTANT’s project
management’s plan and strategies to perform the scope of work for <Project’s
Name>.

2.0 OBJECTIVE

The main objective of this plan is to inform the OWNER on CONSULTANT‘s

execution plan as well as to create awareness among CONSULTANCY staff on
project execution strategies and implementation.

3.0 DEFINITIONS

<List of Abbreviations, Name of the OWNER, CONSULTANCY GROUP,

Definitions>

4.0 REFERENCE

< CONSULTANCY Services Proposal>

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5.0 PROJECT DESCRIPTION

<Description of the Project’s location and size, history of upstream efforts (if
any)>

<Describe the production rate and systems, name of processing facilities and
types of production treatments prior exported to pipelines.>

6.0 SCOPE OF WORK

<Details of scope of work referred to proposal.>

7.0 PROJECT ORGANISATION

<Provide description of the roles, responsibilities and qualifications in an

attachment.>

8.0 EXECUTION STAGES

As per the scope of work stated in the proposal agreement, the execution plan is
broken down into the following disciplines:

a. Engineering

b. Procurement

c. Construction & Pre-commissioning

d. Commissioning

e. Project Planning and Control

f. Quality Management

g. Health, Safety, and Environment

h. Document Management

i. Final Handover

8.1 ENGINEERING

8.1.1 General

This plan describes and establishes engineering practices, resources,

and sequence of activities needed to meet project management
consulting requirements as described in the CONSULTANT’s contract.
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8.1.2 Functional Objectives

To ensure successful delivery of CONSULTANT’s engineering services

that meet project needs, established requirements and OWNER
expectations in terms of time, cost, and quality for the scope of works
where engineering services conducted by CONSULTANCY.

To assure OWNER that the CONTRACTOR’s engineering related work

and products are in compliance with the requirement stated in
respective contracts in terms of time, cost, and quality.

To closely work with other groups within the CONSULTANCY

organization to meet project targets i.e. prompt feedback to
procurement, construction and commissioning groups on technical
queries, prompt reaction against quality assurance non-compliance and
potential non-compliance.

<Describe Key Indicators and Standards.>

8.1.3 Engineering Practices

The following practices are appropriate to CONSULTANCY engineering

activities during the project executions.
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Organisation

This project shall be staffed by qualified engineers as needed for

effective monitoring, assessment, and verification of engineering
requirement.

Responsibility and Authority

The engineering manager is responsible to ensure this plan is carried

out. Specific engineering responsibility, authority and interrelation of
those who monitor, assess or verify performance or results are defined
in appropriate procedures or instructions.

Resources

The engineering manager shall identify the required resources and

assign trained personnel to monitor and verify CONTRACTOR
performance of engineering works.

Monitoring and Verification

Monitoring and verification activities to be undertaken are addressed in

the procedure Monitoring and Verification of Engineering by OTHERS.

Design Management Plan

For design that is under CONSULTANT’s responsibility, CONSULTANT

shall monitor and verify the changes required and updates the
document as appropriate. CONSULTANT’s field engineering services
shall be deployed to manage the interface between engineering and
procurement/construction/commissioning CONTRACTOR. The
engineering manager shall ensure that the design management plan
meeting requirement stated in the <Quality Control of Design Activities.>

Design Control

The CONSULTANT’s Engineering Group shall monitor and verify that

design control is established and practiced by both CONSULTANT’s
engineers and EPCC CONTRACTORs’ engineers.

Document and Data Control

The CONSULTANT’s Engineering Group shall achieve and maintain

document and data control as required by procedure Document Control.
The group shall also monitor and verify that the required control in
managing document and data are achieved and maintained by
CONTRACTORs.

Procurement

The CONSULTANT engineering group shall monitor and verify EPCC

CONTRACTOR’s procurement activities including reviewing and
recommending approval of evaluation process prior to CONTRACTOR
placing a purchase order or requisition.
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8.1.4 Resources

The resources needed to manage the engineering group during this

project are for the most part related to monitoring and verification of
CONTRACTOR activities. To accomplish this task requires:

a) Trained technical staff with appropriate skills.

b) Organizational Freedom and Authority of all verification personnel is

established.

c) Time (man-hours) to accomplish the work

CONSULTANT has estimated the skills and man-hours needed and

included these factors in CONSULTANCY contract agreement. Skills
are described in appropriate job descriptions and assignment addressed
in this document. Man-hours are constrained by the terms expressed in
CONSULTANCY contract. Should substantial changes in the scope of
work occur the man-hour requirements might require adjustment and
such must be included in any proposed change adjusting the scope of
work.

8.1.5 Sequence Of Activities

Activities to be performed by the engineering functions shall be

integrated into project schedules. The event/activities listed below shall
be scheduled and accomplished during the project phase indicated.

PHASE 1 - Bid Evaluation

a) Technical evaluation criteria

b) Commercial evaluation criteria

c) Preparation of Tender Estimates

d) Clarification of Issues raised by bidders

e) Technical evaluation of PCC and EPCC bids

f) Support of commercial bid evaluation

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PHASE 2 - Detailed Engineering and Procurement

a) Monitor and verify EPCC CONTRACTOR’s engineering

activities/performance

b) Review and approve PCC CONTRACTOR’s shop drawings

c) Review and recommend actions regarding technical document

submitted by EPCC CONTRACTOR.

d) Review and recommend actions regarding proposed technical

changes.

e) Provide technical information to other functional groups.

f) Ensure execution of HAZOP studies by EPCC CONTRACTOR

g) Monitor and report engineering related construction matters and

schedule status or progress

8.2 PROCUREMENT AND MATERIALS MANAGEMENT

8.2.1 General

This plan describes the Management Practices, Resources, and

Sequence of Activities to be accomplished by CONSULTANT’s
procurement and materials management functions as per the
requirement of CONSULTANCY contract. Those activities of the overall
project management plan that determine the objectives and
responsibilities appropriate to the functions of specifying, purchasing,
handling, storage, packaging, preservation and delivery of materials to
be included into the completed work

8.2.2 Functional Objectives

To assure OWNER that procurement and materials related activities are

in compliance with the stated requirement and the materials procured by
the CONTRACTOR to meet established requirement for time, cost, and
quality.

<Describe Key Indicators and Standards.>

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8.2.3 Management Practices

These practices are appropriate to CONSULTANT’s procurement and

materials management activities during this project.

Organisation

This project shall be staffed by qualified procurement and materials

management specialist as needed for effective monitoring and
verification of the CONTRACTOR’s procurement and material activities,
including monitoring and verification of SUPPLIER’s quality.

Responsibility and Authority

The Procurement & Materials Function Manager is responsible to

ensure this plan is carried out. Specific responsibilities, authority and
interrelation of those who monitor, assess or verify performance or
results are defined in appropriate Project Procedures. Overall Project
responsibility and relationships are addressed in Project Execution Plan
and authority in individual job descriptions.

Resources

The Procurement & Materials Functions Manager shall identify resource

requirements, provide needed resources and assign trained personnel
to monitor and verify CONTRACTOR’s performance including the
quality of materials procured by the CONTRACTOR.

Monitoring and Verification

Monitoring and verification activities to be undertaken are addressed in

the procedure Monitoring and Verification of Procurement by OTHERS,
PO-PR-001.

The Procurement & Materials Functions verification activities shall be

defined and documented in appropriate Project Procedure and Work
Instruction.

Procurement Plan

The Procurement & Materials Functions shall monitor and verify the
CONTRACTOR has developed and implemented a Procurement Plan,
which conforms to appropriate contract requirements. Thereafter, the
Procurement & Materials Functions shall monitor and verify the
CONTRACTOR performance complies with the approved plan. The
procurement plan shall address procedures for purchase specifications
and purchasing. The plan shall also provide appropriate
procedures/instructions for handling, storage, preservation and delivery
of materials.

Document and Data Control

The Procurement & Materials Functions shall achieve and maintain

document and data control as required by Project Procedures and Work
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Instructions. The function shall also monitor and verify that the required
VENDOR and SUB-CONTRACTOR provided document and data
control is achieved and maintained in compliance with the
CONTRACTOR’s procedures as approved by OWNER.

8.2.4 Resources

The resources needed to manage the Procurement & Materials

Function during this project are for the most part related to monitoring
and verification of CONTRACTOR’s activities. To accomplish these
tasks effectively requires:

a) Trained Technical Staff with skills appropriate to the specific

activities

b) Organizational Freedom and Authority of all verification personnel

must be clearly established

c) Time (man-hour) to accomplish the work.

CONSULTANT has estimated the skills and man-hour needed and

included these factors in the CONSULTANCY contract agreement.
Skills are described in appropriate job descriptions and assignment
address in Project Plans, Procedures, Work Instructions, etc. Man-hours
are constrained by the term expressed in the CONSULTANCY contract.
Should substantial changes in the scope of work occur the man hour
requirements may require adjustment and such must be included in any
proposed change adjusting the scope of work.

8.2.5 Sequence Of Activities

Activities to be performed by the Procurement & Materials Functions

shall be integrated into the project schedule. The procurement and
materials management activities listed below shall be scheduled and
carried out during Detailed Engineering and Procurement.

a) Monitor and verify equipment and major purchases

b) Coordinate Engineering review of Comprehensive Technical

Evaluations submitted by the CONTRACTOR.

c) Coordinate with and assist the Quality Assurance Function to carry

out

• Review and recommend approval of procedures for inspection,

expediting, and quality assurance of material at VENDORs shop

• Engage third party inspection and expediting agencies

• Review or Audit of VENDOR quality assurance activities are

carried out as approved by CONSULTANT

• Monitor and verify that CONTRACTOR’s SUPPLIER quality is

adequate to meet stated requirements
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d) Ensure that Comprehensive Technical Evaluations are approved

prior to CONTRACTOR placing orders

e) Monitor and advise OWNER on the CONTRACTOR

• maximum use of local resources and SUPPLIERs of materials

and equipment.

• appointment of VENDORs and SUB-CONTRACTOR.

f) Perform the following tasks and advise OWNER on the

CONTRACTOR compliance with approved standards, specifications,
and schedules

• Monitor and verify procurement activities

• Review proposed changes in VENDORs and recommended to

OWNER

• Ensure CONTRACTOR is carrying out expediting when

necessary

• Report and recommend actions to correct ANY change that will

affect schedule or quality

• Assist OWNER’s Operations with spare parts management

• Provide assistance with import tax exemptions and customs

clearance

• If required assist OWNER with direct procurement of items

operation

• Monitor and verify that the CONTRACTOR adheres to all

requirements imposed by authorities

• Ensure that ownership and title of purchased items is vested in

OWNER no later than their arrival to site

• Report to OWNER monthly on procurement schedule and quality

g) Coordinate with the Project Controls Function to carry out

• Review of Procurement Schedule compatibility with Project

Schedule

• Analyses of quoted delivery dates for compatibility, schedule

adherence, and ability to meet the construction schedule.

h) Coordinate with the Engineering Function to carry out

• Review of comprehensive technical evaluations and recommend

to OWNER
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• Witness shop test of equipment

• Identifying long-term spares, consumable spares, lubricants and

lab equipment

i) Coordinate and assist Construction and Commissioning to

• Monitor and verify that goods received at site are inspected,

identified and catalogued, properly stored and maintained by the
CONTRACTOR

• Ensure adequacy of spare parts and process consumable items

are purchased for commissioning

8.3 CONSTRUCTION

8.3.1 General

This section describes and establishes CONSULTANT’s Construction

Management practises, resources and sequence of activities needed to
meet project management consulting requirements as described in the
CONSULTANCY Contract.

8.3.2 Functional Objectives

To monitor and verify that the project is built in accordance to the

schedule project standards, specifications, and other requirements in
EPCC contract agreement and advise OWNER on the performance of
EPCC CONTRACTOR.

<Describe Key Indicators and Standards.>

8.3.3 Construction Management Practices

These practices are appropriate to CONSULTANT’s construction

management activities during this project.

Organisation

Qualified personnel as needed for effective monitoring, assessment,

and advising OWNER on matters related to project management should
staff this project. Functional organization charts for project phases are to
be issued by Project Manager initially and thereafter when changes are
made.
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Responsibility and Authority

The Project Manager is to ensure this Plan is carried out.

Resources

The Project Manager shall identify resources requirements, provide

needed resources as agreed by OWNER and assigned trained
personnel to monitor and verify CONTRACTOR’s performance of
construction work.

Monitoring and Verification

Monitoring and verification activities to be undertaken are addressed in

the procedure Monitoring and Verification of Construction by OTHERS.

Verification by qualified and trained engineers is the primary means, by

which CONSULTANT measures and assesses performance and results.
Construction verification activities shall be documented in appropriate
project surveillance format.

Quality Plan

CONTRACTOR shall submit a detail Quality Plan for the construction

phase for approval by OWNER or OWNER’s Representatives. This Plan
shall address inspections, tests and other quality related activities to be
carried out by the CONTRACTOR. After OWNER approval of the
Quality Plan, CONSULTANT shall monitor and verify the
CONTRACTOR’s compliance to the approved Quality Plan.

Document and Data Control

The Construction Function shall achieve and maintained document and

data control as required by project procedures. The function shall also
monitor and verify that required documents and data control is achieved
and maintained by CONTRACTOR.

8.3.4 Resources

The resources needed to monitor and advise OWNER on construction

matters during this project are related to monitoring and verification of
CONTRACTOR activities. To accomplish these tasks effectively
requires:

a) Trained technical staff with skills appropriate to specific activities.

b) Organization freedom and authority of all verification personnel must

be clearly established.

c) Time (man-hour) to accomplish the work.

CONSULTANT has estimated the skills and man-hours needed and

included these factors in the CONSULTANCY contract agreement.
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Skills are described in appropriate job description and assignment

addressed in Project Plan, Procedures, Work Instruction, etc.

For site staff a fixed daily charge rate shall be applied. Estimate duration
of each site staff will be provided.

Man-hours are constrained by the term expressed in the

CONSULTANCY contract. Should substantial changes in the scope of
work occur, the man hour requirement may require adjustment and such
must be included in any proposed change adjusting the scope of work.

8.3.5 Sequence Of Activities

Activities to be carried out by the Construction function and appropriate

phases of the WORK i.e. Base Work and Optional Work are describe in
the CONSULTANCY scope of work and include the following areas of
activity in Engineering, Procurement, Construction and Commissioning.

a) Monitor and verify CONTRACTORs’ construction and quality

activities as described in the CONSULTANCY contract

b) Review and recommend action regarding plans and procedures

submitted by the EPCC CONTRACTOR. When approved, monitor
and verify CONTRACTOR compliance with these documents

c) Review and recommend actions regarding proposed changes

d) Monitor and report construction related cost and schedule

status/progress

e) Support the Commissioning and Operation Functions as needed.

f) Prepare a construction closeout report

8.4 COMMISSIONING

8.4.1 General

This section describes and establishes CONSULTANT’s commissioning

management practices; resources and sequence of activities need to
meet project management consulting as described in the
CONSULTANCY contract.

8.4.2 Functional Objectives

To monitor and verify CONTRACTOR’s commissioning activities in

order to advise OWNER that these activities are being implemented
incompliance with safety and environmental requirements, schedules,
approved procedures and other requirements of the contract agreement.

<Describe Key Indicators and Standards.>

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8.4.3 Commissioning Management Practices

These practices are appropriate to CONSULTANT commissioning
management activities during this project.

Organisation

This project shall be staffed qualified specialists as needed for effective

monitoring, assessment and advising OWNER on matters related to
project Commissioning Manager initially and thereafter when changes
are made.

Responsibility and Authority

The Commissioning Function Manager is responsible to ensure this plan

is carried out. Specific responsibilities, authority and interrelation of
those who monitor, assess or verify performance or results are defined
in appropriate Project Procedures or Work Instructions <Overall Project
responsibility including the authority of each individual.>

Monitoring and Verification

Monitoring and verification activities to be undertaken are addressed in

the procedure Monitoring and Verification of Commissioning by
OTHERS.

Verification by qualified and trained specialist and Engineer is the

primary means by which CONSULTANT measures and assesses
performance and results. Commissioning verification activities shall be
defined and documented in appropriate project procedure and work
instruction.

Commissioning Plan and Procedures

The Commissioning Function shall monitor and verify that the

CONTRACTOR has developed comprehensive written and schematic
procedures, which include start-up and shutdown procedures,
performance test and turnover procedures. These documents require
OWNER comment and approval. The commissioning function shall
monitor and verify that the CONTRACTOR’s performance and results
remain in compliance with these documents.

Document and Data Control

The commissioning functions shall achieve and maintain document and

data control as required by Project Procedures and Work Instructions.
The function shall also monitor and verify that required document and
data control is achieved and maintained by the CONTRACTOR. The
requirements, activities, and responsibilities appropriate to document
and data control are address in procedure Document Control.

8.4.4 Resources

The Commissioning Manager shall identify resource requirements,

provide needed resources and assign trained personnel to monitor and
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verify CONTRACTOR’s performance of the commissioning work. The

resources needed to monitor and advise OWNER on commissioning
matters during the commissioning phase of this project are for the most
part related to monitoring and verification of CONTRACTOR’s activities.
To accomplish these tasks effectively requires trained technical staff
with skills appropriate to the specific activities.

Time (man-hour) to accomplish the work. CONSULTANT has estimated

the skills and man-hour needed and included these factors in the
CONSULTANCY contract agreement. Skills are described in
appropriate job descriptions and assignment address in project plans,
procedures, work instructions, etc. Man-hours are constrained by the
term expressed in the CONSULTANCY contract. Should substantial
changes in the scope of work occur the man hour requirements may
require adjustment and such must be included in any proposed change
adjusting the scope of work.

8.4.5 Sequence Of Activities

The CONTRACTOR shall prepare a detailed schedule for the

commissioning time frame together with a VENDOR support schedule.
Both of these documents are too reviewed and approved by OWNER.

8.5 PROJECT PLANNING & CONTROL

8.5.1 General

This section shall provide the plan and strategies in Planning and
Scheduling of works in this project. This procedure covers the initial
activities during the Planning phase of the Project.

8.5.2 Functional Objectives

Project Planning and Control activities is aimed at monitoring and

verifying overall project progress in terms of time and cost to ensure
compliance to master schedule and budgeted cost.

<Describe Key Indicators and Standards.>

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8.5.3 Work Scope Definition

A Work Strategy shall be formulated by CONSULTANT to outline the

implementation strategy that would be the best for the Project.

The main outputs during this phase are:

a) Work Breakdown Structure

b) This Project Execution Plan

c) CONSULTANCY Services Proposal

8.5.4 Work Breakdown Structure (WBS)

CONSULTANT shall develop the first and second level WBS that shall
hierarchically breakdown the Project into smaller, more manageable and
well-defined components to enhance the planning, organization, and
controls of the implementation and reporting of the Project activities.
The detail WBS shall be developed by PCC/EPCC CONTRACTOR and
will be approved by OWNER.

The First and second level WBS shall be approved by the

CONSULTANT’s Project Director and the OWNER’s Project Manager
within 1 month after the Project Start Date.

The approved WBS shall then be compiled in the Project

Implementation Manual for reference and guideline for all Project
activities.

8.5.5 Time, Planning And Scheduling

Time scheduling of the Project shall be addressed by the following

deliverables will be developed:

a) Master Project Schedule

b) Engineering Work Schedule (Level-2)

c) Procurement Work Schedule (Level-2)

d) Construction Work Schedule (Level-2)

e) Commissioning Work Schedule (Level-2)

A Project Schedule Report that provides narrative explanations to the

implementation strategy and sufficient details to describe the scheduling
basis and assumptions made may also accompany the above
schedules. The development of these schedules is more precisely
detailed in the following paragraphs
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8.5.5(i) Master Project Schedule

CONSULTANT shall develop the Master Project Schedule with

thorough considerations to the following Project parameters:

a) Scope of Work as defined in the Contract

b) Scheduling objectives and constraints

c) Financial objectives

d) Quality objectives

The Master Project Schedule shall document sufficient level of

scheduling details to reflect the overall implementation and
strategy in undertaking the Project from the start until
completion.

The Schedule shall reflect the expected Critical Path of the

Project and shall be accompanied by an analysis of the
criticality.

A method statement to address on the foreseeable challenges

facing the critical activities that will potentially affect the whole
Project execution shall also be provided.

The Master Project Schedule shall be approved within 1 month

after the Project Start Date by the following authorities unless
otherwise agreed in the project requirements:

a) CONSULTANCY Project Manager

b) CONSULTANCY Project Director and

c) The OWNER’s Project Manager

The approved Master Project Schedule shall then be compiled

in the Project Implementation Manual to serve as the Baseline
Schedule for all Project activities.

A sample of Schedule Basis Memorandum with Master Project

Schedule is attached at the end of this procedure.

8.5.5(ii) Engineering Work Schedule

The EPCC CONTRACTOR is responsible to develop the

Level-2 Engineering Work Schedule shall be developed to plan
the available resources to accomplish the required Scope of
Work as normally outlined in the Contract as the List of
Engineering Deliverables.

In Level 2 Engineering Work Schedule, a method statement to

address on the foreseeable challenges facing the critical
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activities during this phase should also be provided.

CONSULTANT shall review and approve the work schedule.

8.5.5(iii) Procurement Work Schedule

The PCC/EPCC CONTRACTOR is responsible to develop the

Level-2 Procurement Work Schedule shall be developed to
plan the Procurement activities to accomplish the required
Scope of Work i.e. to procure the designated list of equipment
and materials within the allocated time frame as dictated by the
Master Project Schedule.

This Schedule shall highlight on major Procurement packages

and the critical Procurement milestones. Correct timing
references with Engineering, Construction and other Project
activities shall also be reflected in this schedule.

A method statement to address on the foreseeable challenges

facing the critical activities during this phase should also be
provided.

CONSULTANT shall review and approve the work schedule

submitted by PCC/EPCC CONTRACTOR.

8.5.5(iv) Construction Work Schedule

The PCC/EPCC CONTRACTOR is responsible to develop the

Level-2 Construction Work Schedule to plan the available
resources to accomplish the required Scope of Work i.e. to
construct the facilities and install the designated list of
equipment and materials.

The Construction Work Schedule shall then be further

developed to document sufficient level of details down to Level
4 to reflect the implementation plan to meet the Project
objectives and constraints.

The Schedule shall highlight on the critical activities during this

phase. A method statement to address on the foreseeable
challenges facing the critical activities during this phase that
will potentially affect the other aspects of the Project shall also
be provided. CONSULTANT shall review and approve the
work schedule.
8.5.5(v) Commissioning Work Schedule
The PCC/EPCC CONTRACTOR is responsible to develop the
Level 2 Commissioning Work Schedule to plan the available
resources to commissioning the facilities.

The Commissioning Work Schedule shall document sufficient

details to reflect the overall implementation strategy to meet
the Project objectives and constraints
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The Schedule shall highlight on the critical activities and

milestones during this phase.

CONSULTANT shall review and approve the work schedule.

8.6 COST ESTIMATING AND BUDGETTING

This section of the procedure addresses on the Cost Estimating and Budgeting
for the Project where by the main deliverables are:

a. OWNER’s Capital Cost Estimation

b. CONSULTANT’s Project Operating Budget

8.6.1 Project Capital Cost Estimation

CONSULTANT shall develop the Cost Estimates for the Project Capital
Cost to the accuracy as required by the OWNER and submitted to
OWNER.

A Project Costing Report that provides narrative explanations to the

basis and assumptions made shall accompany the above Cost
Estimate.

The approved Project Capital Cost Estimation shall then be submitted

for OWNER’s review and records.

8.6.2 CONSULTANT’s Project Operating Budget

The CONSULTANT’s Operating Budget shall document sufficient level

of breakdown to reflect the financing plan in undertaking the Project
from the start until completion.

The following authorities shall approve the Project Overall Budget within
four weeks after the Project Award Date unless otherwise agreed in the
project requirements:

a) CONSULTANT Project Manager

b) CONSULTANT Project Director and

c) The OWNER’s Project Manager

The approved budget shall serve as the Baseline Cost Plan throughout
the Project duration.
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8.7 QUALITY MANAGEMENT

8.7.1 General

CONSULTANT is committed to establish, document, implement, and

maintain the project quality management system (QMS) and continually
improve its effectiveness in accordance with ISO 9001:2000 standards.

CONSULTANT shall undertake the following efforts:

• To identify and map all product and functional core business

processes and critical supporting work processes. This shall include
determining the sequence and interaction of these processes

• To determine criteria and methods needed to ensure that both the

operation and control of these processes are effective

• To ensure the resources availability and the necessity of information

in supporting the operation, as well as, monitoring these processes

• To monitor, measure and analyze the processes

• To implement actions necessary to achieve planned results and

continual improvement of these processes

CONSULTANT shall identify appropriate individuals, appoint special

task forces, and obtain necessary external assistance or other suitable
means to help CONSULTANT undertaking the above efforts.

8.7.2 The Process Approach

CONSULTANT’s QMS is based on the management of its core

processes and system, which have a direct impact to the product and
service offered.

This is achieved by defining the processes and measurement system

and how the organization personnel, equipment and technical expertise
shall be managed to ensure that the customers and interested parties
agreed expectations and requirements are met. The CONSULTANT
Business Process shall conform to process approach of the ISO9001:
2000 QMS.

8.7.3 QMS Program

In essence, CONSULTANT QMS program shall cover all phases of the

project namely: basic engineering, detail engineering, ITB preparation,
procurement, construction and commissioning. The program is divided
into 3 categories:

Quality Planning

Quality Planning is a process to identify which quality standards or

requirements are relevant to the project and determining ways and
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methods to satisfy them. The quality planning shall include the following
activities:

• Establish Project Quality Policy

• Establish a specific Project Quality Manual that will show how the
requirement of ISO9001: 2000 is met by the project QMS

• Establish Project Execution Plan

• Support functional groups to establish each group’s objectives

Quality Assurance

Quality Assurance is a process to establish and to reinforce project

quality standards or requirement and to measure and analyze the
effectiveness of the project execution in satisfying the established
quality standards or requirement. The process shall also identify
opportunities for continual improvement in the project. The activities
shall include:

• Establish Quality Assurance Procedures

• Establish Quality Assurance Specifications

• Support other project functional group to establish procedures

• Conduct QA/QC audits on internal CONSULTANT’s organisation

• Conduct QA/QC audits on SUPPLIER and PCC CONTRACTOR

• Manage issuance/maintenance of audit reports for all project audits

• Manage issuance/maintenance of non-conformance reports

• Manage issuance/maintenance of preventive action reports

• Manage customer complaint reports

• Conduct Contract Compliance Verification on CONSULTANT’s

organisation

• Establish specific Quality Assurance Procedures for engineering,

procurement, construction and commissioning activities

• Support other construction and commissioning group to establish

construction and commissioning procedure

• Review procedures by SUPPLIER and PCC/EPCC CONTRACTOR

• Coordinate Technical Audits

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Quality Control

Quality Control is a process to measure and analyze project results from

specific operational activities using specialized operational monitoring
and verification tools and techniques to determine if the results in
compliance to established quality standards or requirement. This
process shall also include identification and elimination of non-
conforming products and identifying ways to eliminate the causes of
non-conformances. The quality control activities shall include the
following:

• Conduct general surveillance on engineering deliverables

• Conduct required inspection at SUPPLIER’s manufacturing/

fabrication facilities

• Lead specific data analysis works for quality improvement

• Conduct third party inspection verification

• Conduct general surveillance on construction and commissioning

activities

• Witness and approve Welding Procedure/Welder qualification

• Witness and approve validation other special construction and

commissioning work processes

• Monitor construction process traceability

• Monitor punch list program

• Conduct verification on mechanical completion and commissioning

completion readiness

• Lead specific data analysis works for quality improvement

• Final Documentation
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8.8 HEALTH, SAFETY & ENVIRONMENT (HSE)

8.8.1 General

CONSULTANT is committed to implement a systematic HSE

management system (HSEMS) that shall ensure a safe and secured
project execution. HSEMS shall be established in order to achieve and
accomplish safe and secured project execution throughout the
CONSULTANT’s scope of works.

The HSEMS is defined as the policies, objectives, organizational

structure, responsibilities, standards, practices, procedures, processes,
controls and resources for implementing HSE management within the
business activities.

8.8.2 HSE Objectives

The objectives of the HSEMS are to ensure that:

a) The health, safety and environmental hazards and effects inherent

in the business operations have been systematically identified,

b) Arrangements are in place to control those hazards and effects and

to deal with the consequences should the need arise,

c) The necessary information, training, auditing and improvement

processes are in place to achieve these objectives.

In other words, the HSEMS is to ensure the reduction of risks within the
business operations and management through the effective
implementation of the contents of the system and thus providing a safe
work environment for all employees either they are direct employees or
CONTRACTORs’/SUB-CONTRACTORs’ employees.

<Describe Key Indicators and Standards.>

In order to emphasize the implementation of HSEMS in the project a

specific HSE Plan shall be developed to specify requirements of
HSEMS to be adhered by the project community.

8.8.3 HSE Culture

8.8.3(i) This section addresses the management and company’s

commitment to sustain a culture that ensures the success of
the HSEMS

8.8.3(ii) These requirements apply to all leading personnel who

provide the leadership, commitment and guidance for the
successful implementation of HSEMS

8.8.3(iii) Management shall provide visible leadership and commitment

to the HSEMS
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8.8.3(iv) Management shall provide the necessary resources and

support to facilitate adherence of the HSE Policy and the
implementation of strategic objective requirements

8.8.3(v) A company culture that supports the HSEMS shall be

characterised by:

• Belief in the company’s intention to improve and maintain its HSE

performance at a required level for effective HSEMS implementation

• Motivation to improve personal HSE performance based on positive

recognition, desirable attitudes and acceptance of individual
responsibility

• Participation of staff at all levels by encouraging their involvement

and incorporating their input in HSEMS development, and
continually seeking and supporting their suggestions for
improvement

• Commitment of staff at all levels is essential to have a successful,

effective consistent implementation and maintenance of the HSEMS

8.8.3(vi) The HSEMS Engineer shall monitor any inconsistencies or

lack of management leadership within the company, and
provide improvement measures as necessary

8.8.4 Organisation

Implementation of HSEMS by CONSULTANT in the project involves

three areas of the organisation: The Project Overall organisation, the
project site organisation and the HSE Committee organisation.

8.8.4(i) Central Management Organisation

The organisation structure shown in attachment depicts the

CONSULTANT’s Project Overall organization, including
functional areas and management roles. The Project Overall
organization has overall responsibility and accountability for
managing HSE in CONSULTANT’s activities. Inherent in each
of the roles in the business structure is the responsibility and
accountability for implementing the HSEMS within their area of
authority. These responsibilities are further described in this
section.

Within the Project Overall structure is the Quality and HSE

department. This department reports directly to the Project
Manager to ensure autonomy and a direct communication path
to senior management for quality and HSE related matters.
The Quality and HSE department is facilitator and a resource
for the organisation in implementing the HSEMS.
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8.8.4(ii) Project Site Organisation

The project site organisation has the responsibility and

accountability for managing HSE at project site. Similar to the
Project Overall structure, each of the roles in the project
organization has the responsibility and accountability for
implementing the HSEMS within their area of authority, and
these are described in this section. The respective Site
Managers shall be responsible for defining the HSE roles and
responsibilities of positions at construction sites that are not
provided in the HSEMS Plan.

8.8.5 HSE Committee Organisation

The Project HSE Committee shall have the mixture of all parties
involved in the project i.e. the OWNER, the CONSULTANT, and Sub-
CONTRACTORs. The objectives of the HSE Committee are as follows:

• Provide a safe and healthy workplace

• Foster co-operation and consultation between management and

workers in identifying, evaluating and controlling hazards

• Provide a channel of communication to exchange ideas, problem

solving and feedback

• All levels of management and supervision personnel shall commit

fully to their HSE responsibilities to ensure the success of HSEMS.

• Principal accountabilities shall include the general HSE strategic

objectives and others developed for individual positions in the
organisation charts to meet agreed HSE targets.

• All employees of CONSULTANT need to understand that they have

a duty and responsibility to stop work that is being attempted in an
unsafe manner, and to advise the senior manager immediately
where and why this has been done.

8.8.6 Implementation Strategy

CONSULTANT’s Strategic Objectives associated with Implementation

are:

8.8.6(i) Roles and Responsibilities of each individual in Projects.

Management shall ensure that all employees are provided with a written
description of their roles and responsibilities with respect to the HSE
management system and have the necessary knowledge and skills to
perform their current jobs safely

8.8.6(ii) Monitoring and Verification of HSE performance by CONSULTANT

and EPCC CONTRACTOR. Safety performance will be monitored in a
consistent manner across project teams to track HSE performance
within the organisation. This requirement shall be extended to EPCC
CONTRACTORs where CONSULTANT’s role shall be to continuously
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monitor the performance and make periodic verifications to ensure the

HSEMS requirement is met

8.8.6(iii) Communication and Training of Safety. The Management from

CONSULTANT’s side or EPCC CONTRACTOR shall ensure all
employees are aware of the standards of the HSEMS to be used,
through communication and training at all levels and all locations of
works. Apart from CONSULTANT’s HSE Plan, EPCC CONTRACTOR
shall be required to provide their own HSE Plans to define strategies,
rules and requirement in the implementation of HSE in each package

8.8.6(iv) All CONTRACTORs will be subject to assessment and pre-

qualification prior to contract award. CONTRACTORs shall
demonstrate compliance and commitment to the CONSULTANT’s
HSEMS, as a minimum

8.8.6(v) Management shall ensure that open and effective communication

channels are maintained between the employees, the OWNER, the
local community, and CONTRACTORs to ensure that HSE concerns of
all parties are responsibly addressed

8.8.6(vi) CONSULTANT shall continuously improve its HSE performance through

adoption of audit recommendations, management review comments and
feedback from the workforce, OWNER and CONTRACTORs via well-
established communication channels

8.8.6(vii) Outstanding HSE performance by OWNERs, employees and

CONTRACTORs shall be recognised

8.8.6(viii) Incidents that result in actual losses, including potentially serious near
misses, will be reported investigated and analysed in a consistent
manner. Corrective actions arising from investigations will be reviewed
by Management and recommendations for implementation issued

8.9 DOCUMENT MANAGEMENT

Document Controller (DC) shall control all project documents and records. A
dedicated document room shall be furnished to ensure effective document and
records management of the project. CONSULTANT has established the
mandatory QMS procedures Document Control and Control of Project Records
to specify the management requirement for the Document and Records control of
project. For detail methods on filing of document and records, procedure Project
Document Filing System is established. All document and records shall be
established and identified by unique numbering. The procedure Document
Numbering System is established to define rules to number a document or
record.

8.9.1 Hierarchy of Document

In case of conflict between the requirements of any of the above

documents, the following order of precedence will apply:
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a) The requirements of contract between OWNER and CONSULTANT

for the supply of Consultancy services

b) The requirements of the Project Implementation Manual

c) The requirements of the Functional area plans, guidelines and

procedures

Responsibility for the resolution of all conflicts between project quality

system documents rests with the Project Manager.

8.9.2 Responsibility for Document and Records control

Document Controller

• Maintaining master list of control document

• Distributing controlled document whether in-process or approved

ones

• Receive and distribute correspondence and maintaining the

database of correspondence

• Maintain all original project records and distribute copies

Functional Department

• Document & records content

• Document & records numbering

• Maintaining of database(s) of documents including; completion,

milestones (planned and forecast/actual)

• Reports from database(s) showing only the responsibility of the

functional group

Quality Assurance

• Monitoring the process of producing documents

• Specifying format of document and records

• Monitoring effectiveness of document reviews and approvals

whether it is CONSULTANT’s or CONTRACTORs’

• Conducting audits and surveillances

Project Control

• Development of project control databases

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• Identification of trends and variances against the planned dates

• Ensure variances are resolved or accepted and planned dates are

amended if required and re-approved.

8.9.3 Project Final Documentation

The Project Manager shall have overall responsibility to ensure that final
project documentation and quality records are fully monitored by
CONSULTANT's project team, to ensure the documentation shall fully
describe and demonstrate the quality of work performed in engineering,
procurement, construction and commissioning.

Responsibility rests with functional managers to ensure project

documentation and quality records in their individual functional area are
compiled in an organized manner, and ensure all documentation
demonstrates compliance with applicable standards.

8.10 PROJECT COMPLETION MANAGEMENT

8.10.1 Mechanical Completion

CONSULTANT shall form a specialized monitoring team to verify

CONTRACTOR’s Mechanical Completion. This team, which normally
led by Construction/Commissioning Manager, shall conduct the
following activities:

• Coordinating documentation of punch list

• Coordinating punch list clearance

• Identifying actions to resolve any punch list issues

• Reviewing Mechanical Completion checklist

• Updating Mechanical Completion checklist

• Reviewing Submission of Mechanical Completion Dossiers

• Recommend to OWNER the Approval of Mechanical Completion for

CONTRACTORs

Project QA/QC Engineer shall play his inspection and surveillance role
in making sure the correctness and completeness of the
CONSULTANT’s produced document and CONTRACTORs’ submitted
document.

8.10.2 Initial Acceptance

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CONSULTANT’s commissioning team shall conduct monitoring and

verification of start-up activities until the stable operation of the plant.
The Initial Acceptance Dossiers shall be prepared by CONTRACTOR
and submitted to OWNER for review and approval. Upon approval of the
dossiers and completion of physical works, the team shall recommend
Initial Acceptance of the project and the handover of the plant from
CONTRACTOR to OWNER.

8.10.3 Final Acceptance

CONSULTANT shall monitor the clearance of all punch lists from Initial
Acceptance stage and ensure the completion of Project Handover
Dossiers prior to recommending Final Acceptance of the project to
OWNER.

8.11 CONSULTANT - OWNER INTERFACE

8.11.1 Project Progress Meetings

The Project Manager will chair weekly Project Progress Meetings. The
purpose of these meetings is to review the status/progress of all project
activities including activities, identify any major problems or concerns,
assign action items and set a schedule for resolving such problems or
concerns.

All the respective managers as well as Lead Discipline Engineers shall

attend these meetings.

8.11.2 Meetings with OWNER

The Project Manager will schedule and chair monthly meetings with the
OWNER as necessary. The Engineering Manager, Project Control
Manager, Procurement Manager and all Lead Discipline Engineers
attend these meetings. They are held to provide the OWNER with a
general status of the Project and to obtain his feedback.

8.11.3 Meetings with CONTRACTOR

CONTRACTOR’s Project Manager shall chair the meetings with

OWNER. CONSULTANT shall represent OWNER during discussion or
negotiation with CONTRACTOR and also the decision-making in the
meeting. OWNER may also be present in the meeting.

8.11.4 Monthly Status Report

The Engineering Manager is responsible for preparing the engineering

section of the Monthly Report. He is also responsible for assembling
the supporting documents and supplying necessary information using
the Engineering Management System.

8.11.5 Official Correspondences

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The procedure Communication & Correspondence Control specifies the

procedure for official written communication between CONSULTANT
and Contractor.

8.11.6 Unofficial Daily Communication

Any informal discussion, negotiation, decision-making with OWNER or

CONTRACTOR will not be valid unless written documentation is
generated to record such communication has occurred.